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However, revenue collection is not the only indicator by which the GRA measures its performance. Providing efficient service to the public, being able to deal with quite a number of issues, having to grapple with the daily flow of goods that accumulate on the wharves, and having to clear them in a timely manner, are some of the major issues the GRA also has to deal with.
Sattaur observed that the fact that Guyana is still experiencing some amount of brain drain from migration, has in no small manner affected the organisation and its capability.
He also pointed to one major challenge in 2012, which related to the Linden unrest and the serious issues that flowed from that. The GRA Head stated that for a period of time, there were concerns by the business community that the Linden unrest would have overflowed into the city and would have affected business performance.
Nevertheless, he commended the hard work of the GRA staff which enabled the body to overcome many of the obstacles and made them very optimistic that it would pay off the right amount of dividends for the GRA and Guyana.
One major encouragement for the Revenue Authority’s performance in
2012 was the sense of accomplishment when the new building located in Camp Street became available for occupancy and the process commenced to house the entire operations of the GRA under one roof.
While there was discussion in the National Assembly on whether funds should continue to be provided for its outfitting, the GRA boss said there was a significant amount of work that had to be done. The installation of clean power, computers and staff accommodation, he explained, would require a significant amount of outlay to accommodate approximately 750 staff members at the end of the exercise.
The building will house the Legal Department, Remission Unit, Planning and Analysis Unit, Human Resource Department, Finance Department, Facilities Management, Customs Operations, Income Tax Department, VAT Department and Licence and Revenue Department.
Bringing all the departments into a single building at one location would lead to more efficient services, as well as ease of access for the taxpayers.
Sattaur expressed the hope that these points would be cause for reflection by the decision makers towards the national good, in ensuring that the GRA is given the necessary support to occupy the building. He pointed out also that there would be a significant reduction in the cost of tax collection, and urged Parliament to let good wisdom and judgment prevail by putting aside narrow interests and looking at the national good.
Tax evasion
Noting that more than half of Guyana’s taxpayers comply voluntarily and meet their commitments without cheating, Sattaur pointed out that efforts sometimes have to be made to force the non-compliant into complying. Behind the scenes, the Audit Department would examine assets compared to income.
The targets are big buildings and their owners, and persons who may not have submitted fair returns or failed to submit any. The Debt Management Unit also serves as an enforcement of the agency and targets evaders of Customs duties and VAT.
The agency’s head noted that persons who do not issue receipts to customers are not accounting for VAT, and reports to the Legal Department would enable the enforcement of the law against those businesses who refuse to pay by adopting this method of business.
However, enforcement activities have been successful and are reflected in the increased revenue collected. While concerned about the shortage of human resources, Sattaur said media educational programmes have contributed greatly towards enforcement and in encouraging compliance. He also commended government for controlling the economy which allowed increased collection.
Regarding claims by the political Opposition that some government agencies and persons who were ‘friends of the Government’ were not paying taxes; Sattaur insisted that all taxpayers are treated fairly and justly, and that there is no discrimination. “All are put under the radar, government or otherwise,’ he declared.
However, with limited resources, he acknowledged that there may be the perception that the GRA does not go after those persons. However, that doesn’t mean that the body will not. Sattaur explained also that while the Intelligence Unit gathers information, informers also report to the GRA and records from business activities, ownership of vehicles, purchase of houses and assets are all processed by the relevant departments, while the Debt Management Department takes care of the delinquent taxpayers.
He urged the public to assist by reporting more specific information of persons who may be dodging taxes, such as their actions, location and assets. This is a civic responsibility to be carried out by all citizens, he observed.
The container scanner has been a major success during 2012 according to Sattaur, and its acceptance level is very high in the business community and sees compliance. This, he noted, has led to the detection of cocaine and false declaration of goods, among other things.
Nevertheless, with, in excess of 5,000 containers entering the country each month, a risk management process determines which container is scanned, through the profiles of the shipper and recipient. A request has been submitted for an additional scanner.
Tax rebate refunds were made to persons who are subject to PAYE deductions. The GRA is committed to clearing up those arrears which amount to in excess of $600M to pay to more than 72,000 taxpayers. This exercise is expected to be completed before the end of this month.
Reviews are currently ongoing on investors who were granted tax holidays and exemptions, and post audit verification is being conducted on their status. If those companies are not performing or conducting business as they had initially indicated, their exemptions would be stalled until the investor complies. The law enforcement department handles this aspect.
Smuggling
In its vigorous pursuit of tax evaders, the GRA in March seized a quantity of uncustomed alcoholic beverages valued approximately $15M, including Ciroc Vodka, Johnny Walker (Black Label), Hennessey, Smirnoff Vodka, Heineken Beer and Tequila”. The driver and porters were unable to produce any documentation to prove that the goods were legally imported and that the relevant duties and taxes were paid, in contravention of Section 218 (d) of the Customs Act, Chapter 82:01.
In an effort to clamp down on smuggling activities at the Guyana-Suriname border, the customs departments of both countries have instituted a new procedure, whereby boat owners are required to report to customs at both Corriverton and Nickerie with valid customs clearance for their boats.
The new arrangement has resulted in more boat owners reporting to Line Path, Corriverton, and paying the relevant duties and taxes. This measure and others by the GRA, in collaboration with senior officials of the Suriname Customs and Excise Department to curtail smuggling activities, have resulted in significant revenue collection.
During May, however, there was a reduction in revenue collection at Corriverton, with resurgence in smuggling activities involving boat operators who were submitting forged customs clearance documents to officials in Nickerie. New procedures and more stringent perusal of declarations and law enforcement officers deployed from Georgetown to conduct patrols to prevent smuggling activities, resulted in greater scrutiny of import declarations and adjustment in values declared.
Monitoring for Amaila project
September saw the establishment of a monitoring secretariat to bring together the major domestic players regarding the Amaila project. This unit, chaired by President Donald Ramotar, is given administrative support from the National Industrial and Commercial Investments Limited (NICIL).
As the largest investment in Guyana, the project will see hundreds of millions of US dollars in imports arriving by sea and having to be cleared and transported to the site at Amaila Falls. Thus the GRA’s mandate will be carried out to ensure that all is above board.
Tax sites
Tax sites in Regions 3, 4, 6 and 10 were established to facilitate submission of Income, Property, Capital Gains and Corporation Tax Returns. The sites, mobile and stationary, have been established at convenient locations away from GRA’s offices to accommodate taxpayers who are unable to visit the agency’s offices and also provide assistance to taxpayers as it relates to correctly completing and submitting tax returns.
Online assistance
An online feature of the agency assists in the monitoring of customs declarations by importers or brokers. The internet-based feature enables importers to respond quickly in instances where documents are queried or delivery is flagged for enforcement check.
UN assistance
In August, Guyana signed on to the implementation of the Container Control Programme developed by the United Nations Office on Drugs and Crime (UNODC) to assist states in protecting their import and export ports through the implementation of systems to prevent the smuggling of drugs and contraband in containers. The MOU caters for the establishment of a port control unit in Guyana, which will assist in combating the threat posed by traffickers using the maritime chain to further their illegal activities.
Officers from the Guyana Revenue Authority and other agencies received training to make operational the Unit stationed at the John Fernandes wharf.
A move to clamp down on ‘suitcase traders’ saw the move to install a scanner for incoming baggage at the Cheddi Jagan International Airport, targeting small packages, mainly for suitcase traders and commercial goods brought in suitcases. The X-Ray scanner has been procured and would be installed early next year.
In its continuing bid to keep abreast with government’s commitment to modernise the administration of the country, the GRA has also moved to replace the decades-old book-format of drivers’ licences. These would be replaced by a plastic card next year. Additionally, motor vehicle owners will now be able to renew their licences on the anniversary of its registration, through the recent amendment by the National Assembly to the Motor Vehicle and Road Traffic Act. The Act was previously amended in 1973, and motorists were required to have licences renewed by January 1 of each year.
The change was prompted by significant increases in motor vehicles being registered annually, and with more than 100,000 to process within a three- month period. Renewals will now be spread over a period of one year, reducing the number of transactions to approximately 9,000 per month, instead of the more than 34,000 in the past.
Meanwhile, the Motor Vehicle Registration Series ‘PPP’ came to an end, and the next available registration series began. Vehicles now registering bear the PRR series, since the alphabet letters I, O and Q are not used in the Registration Series. (GINA)
